Jul 2015 Financial News

CariCRIS reaffirms TT ratings

Jul 22, 2015

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the ratings of CariAAA (Foreign & Local Currency Rating) on its regional rating scale, and ttAAA on the Trinidad and Tobago national scale to the notional debt issue of US$500 million of the government of Trinidad and Tobago.

These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean is the highest, cariCRIS said in a statement last week.

“The ratings of the government of the Republic of Trinidad and Tobago reflect its strong, resilient and fairly well diversified economic structure. The ratings also reflect its favourable external position evidenced by robust foreign exchange reserves and low external debt financing requirements. Also supporting the ratings are its better than budgeted overall fiscal performance in FY2013/14, its relatively low public debt as well as its well regulated financial system with stable monetary and exchange rate policies. These rating strengths are tempered by high, recurring non-energy fiscal deficits together with heightened crime and an increasing perception of corruption impacting its broader social and political stability.”

Trinidad and Tobago are the two southernmost islands of the Caribbean chain, and lie just seven miles off the north-eastern coast of Venezuela.

CariCRIS pointed out that the islands are outside of the usual path of hurricanes and have largely been spared the annual devastation that some of its northern neighbours have endured from storms and weather related troughs.

The population, estimated to be just over 1.3 million people, comprises descendants of primarily India and Africa. The adult literacy rate is within the 80-85 percentile range and education is free from the primary to the tertiary level. The official language is English.

The expansion of T&T’s crude oil industry in the 1950s moved the country from a sugar-based to an energy-based economy.

The vast petroleum and natural gas reserves have enabled the country to develop heavy industries such as liquefied natural gas, methanol, nitrogenous fertilisers, and iron and steel. The country also has a strong presence in manufacturing, wholesale & retail distribution, construction and a vibrant financial services sector.

Tourism is a growing sector in the economy, the statement noted.

Source:
Trinidad Express
Wednesday July 22, 2015

http://www.trinidadexpress.com/20150721/business/caricris-reaffirms-tt-ratings